webfact Posted July 20, 2018 Share Posted July 20, 2018 Thailand mortgages a rip off - 12% interest rates compare to 1% in Europe Picture: Thai Rath A lecturer at Thammasat University has questioned why Thai mortgages for house buyers are so much more than in many other countries. In Germany the interest rates are barely 1%, the UK 1.49% and even some other Asian countries under 2%. And yet Thailand is at 12% - on a par with economically strapped Zimbabwe. Dr Satsatharam Thammabusadee said that with long repayment terms Thais were paying almost twice as much for their houses as the list price. He said a 4 million baht house would set buyers back 7.3 million on a 30 year mortgage. Thai Rath said in their story that owning a home was the dream of many Thais. But that such interest rates were counterproductive and putting people off the idea. Some manage to get their mortgages at 6%, they said, but that was not the norm. Source: Thai Rath -- © Copyright Thai Visa News 2018-07-20 Link to comment Share on other sites More sharing options...
BEVUP Posted July 20, 2018 Share Posted July 20, 2018 Well its' been 4yrs but I find 12 % a bit much - I was paying 9 % through a developer But I find Thais interest rates aren't what they mention EG: A car at 2.5 % is actually 5% Forgot to mention : It has to do with internal forces Europe is going down the drain hole, so they lower the rate for people to spend. But the Thai Gov is spending bucket loads & keeping their currency Link to comment Share on other sites More sharing options...
BritManToo Posted July 20, 2018 Share Posted July 20, 2018 13 minutes ago, webfact said: And yet Thailand is at 12% SCB, TMB and BKB charge 6%. Where does he get 12% from? Link to comment Share on other sites More sharing options...
robblok Posted July 20, 2018 Share Posted July 20, 2018 10 minutes ago, BritManToo said: SCB, TMB and BKB charge 6%. Where does he get 12% from? Good question, and in the topic about teachers in debt they talked about between 5 and 7 % so maybe he is exaggerating and maybe comparing wrong things. If you compare long term interest with short term you will get nice differences too. It is often a full 1% more expensive to do long term compared to short 1 year variable interest. Link to comment Share on other sites More sharing options...
worgeordie Posted July 20, 2018 Share Posted July 20, 2018 I cannot believe any bank in the West is giving mortgages at 1%,where is the profit in that,even if they gave 0 % interest, still not even enough to cover the risks for the Banks. Just checked UK rates,1.70 % as an offer to start then rises to 3.70 % which is the real rate. regards Worgeordie Link to comment Share on other sites More sharing options...
Black arab Posted July 20, 2018 Share Posted July 20, 2018 Bank base rates start 1% etc in uk europe but mortgage rates start much higher, over3% i would imagine. Link to comment Share on other sites More sharing options...
RotMahKid Posted July 20, 2018 Share Posted July 20, 2018 Mortgages rates in the Netherlands 10 yrs stable from 1.68% up to 2.51%, see for yourself and you can see the difference between numbers of years stable. https://hypotheek-rentetarieven.nl/hypotheekrente/10-jaar-vast Link to comment Share on other sites More sharing options...
stud858 Posted July 20, 2018 Share Posted July 20, 2018 The rich take complacency and take as much as they can from it. They would use 20% but that wouldn't work because people would protest in the street or simply not borrow. Or would they? The interest rate is set at the complacency level of the time. Link to comment Share on other sites More sharing options...
Chris Lawrence Posted July 20, 2018 Share Posted July 20, 2018 1 hour ago, worgeordie said: I cannot believe any bank in the West is giving mortgages at 1%,where is the profit in that,even if they gave 0 % interest, still not even enough to cover the risks for the Banks. Just checked UK rates,1.70 % as an offer to start then rises to 3.70 % which is the real rate. regards Worgeordie Top 5 countries with the lowest mortgage rates Ranking Country Average fixed mortgage rate, % 1 Japan 1.68 2 Switzerland 1.75 3 Finland 1.83 4 Germany 1.90 5 Luxembourg 2.00 Sources: Numbeo, Tranio Link to comment Share on other sites More sharing options...
Chris Lawrence Posted July 20, 2018 Share Posted July 20, 2018 The world is enjoying very low rates. The military Bank would be making a motsa for its directors. Link to comment Share on other sites More sharing options...
worgeordie Posted July 20, 2018 Share Posted July 20, 2018 4 minutes ago, Chris Lawrence said: Top 5 countries with the lowest mortgage rates Ranking Country Average fixed mortgage rate, % 1 Japan 1.68 2 Switzerland 1.75 3 Finland 1.83 4 Germany 1.90 5 Luxembourg 2.00 Sources: Numbeo, Tranio I was correct then no Western banks are offering 1 % interest rates on Mortgages regards worgeordie Link to comment Share on other sites More sharing options...
BritManToo Posted July 20, 2018 Share Posted July 20, 2018 44 minutes ago, worgeordie said: I was correct then no Western banks are offering 1 % interest rates on Mortgages regards worgeordie And no Thai bank is charging 12% interest on a home loan. In other words, like all other Thai research/proclamations/announcements, complete BS. Wonder what they will discover looking at plastic in the North Pole? Link to comment Share on other sites More sharing options...
ExpatOilWorker Posted July 20, 2018 Share Posted July 20, 2018 1 hour ago, Chris Lawrence said: Top 5 countries with the lowest mortgage rates Ranking Country Average fixed mortgage rate, % 1 Japan 1.68 2 Switzerland 1.75 3 Finland 1.83 4 Germany 1.90 5 Luxembourg 2.00 Sources: Numbeo, Tranio Or 1.5% fixed for 30 years in Denmark https://www.bloomberg.com/news/articles/2018-01-08/extreme-rates-test-record-in-world-s-biggest-covered-bond-market Link to comment Share on other sites More sharing options...
ExpatOilWorker Posted July 20, 2018 Share Posted July 20, 2018 A negative mortgage rate of (minus) 0.0562% is apparently also possible. https://www.wsj.com/articles/the-upside-down-world-of-negative-interest-rates-1460643111 Link to comment Share on other sites More sharing options...
mauroest Posted July 20, 2018 Share Posted July 20, 2018 Italy : get 100.000 € , pay 872 €/month for 10 years plus 2.000 € for bank documents, insurance, etc (once) This is a promotional and you can get only 50% of the house value Link to comment Share on other sites More sharing options...
yankee99 Posted July 20, 2018 Share Posted July 20, 2018 12% over 30 years is more like 15,000,000 payback on 4 000,000 Link to comment Share on other sites More sharing options...
billd766 Posted July 20, 2018 Share Posted July 20, 2018 Back in 1984 I was paying about 7% on my mortgage and by 1987 I was paying over 15% and my house was in negative equity. Look back to then and see what happens when house prices crash. There were yuppies who paid a fortune for an apartment in Docklands dumping the keys to their apartments at the lenders because they couldn't afford the mortgage to be told, that if it can be sold and we get less than the loan back with interest, you still have no apartment and will become liable for the difference Link to comment Share on other sites More sharing options...
mrmicbkktxl Posted July 20, 2018 Share Posted July 20, 2018 4 hours ago, worgeordie said: I cannot believe any bank in the West is giving mortgages at 1%,where is the profit in that,even if they gave 0 % interest, still not even enough to cover the risks for the Banks. Just checked UK rates,1.70 % as an offer to start then rises to 3.70 % which is the real rate. regards Worgeordie In Germany they start with 0.69% Link to comment Share on other sites More sharing options...
coulson Posted July 20, 2018 Share Posted July 20, 2018 5 hours ago, webfact said: He said a 4 million baht house would set buyers back 7.3 million on a 30 year mortgage Lacking a few minor details here as usual. As much as I like this guys intentions and raising awareness on this broad issue, it just highlights the complete lack of understanding of borrowing money. They have no clue here about interest or term, or how they both accrue to an actual repayment cost. None at all. It's tragic. Link to comment Share on other sites More sharing options...
observer90210 Posted July 20, 2018 Share Posted July 20, 2018 Cheating customers in Thailand ?!!! ?...Now, that's really hard to believe !!! ......Perhaps they mistook the rates and refered to the special "farang mortgage rate" ? Link to comment Share on other sites More sharing options...
YouYouYou Posted July 20, 2018 Share Posted July 20, 2018 Where da 12% come from? Yup, a bit of BS research results eh. Had a mortgage with Bangkok bank for 12.5 years, yr1 3% yr2 4.25% yr3 4.75% then to MLR which for the last 9 odd years has floated between about 5.75% and 7% and last 2 or 3 years stuck at 6.25%. To me fair and seems justified. A mortgage in the late eighties in the UK started out at 7.5% then quickly went all the way up to 13.4% in 89 I think (housing crisis) leaving me living on beans on toast for 2 years as it went down oh soooo slowly. In sum, this guy is talking poo and tbh you cannot compare across economies when it comes to MLR etc. Each country and its government 'should' set it thus to ensure their economy prospers, mortgage rates being one of those important factors. Link to comment Share on other sites More sharing options...
puipuitom Posted July 20, 2018 Share Posted July 20, 2018 No idea, where you got the Dutch mortgage rates from. My idea: 2,4% comes first. Still a dramatic difference with Thailand. Normally in the interest rate the inflation and/or depreciation expectations of a currency is calculated in. Link to comment Share on other sites More sharing options...
HHTel Posted July 20, 2018 Share Posted July 20, 2018 I do like the idea of negative interest. Pay nothing on the loan and wait for it to disappear! I may be venturing into the realms of fantasy! Link to comment Share on other sites More sharing options...
BritManToo Posted July 20, 2018 Share Posted July 20, 2018 1 hour ago, mrmicbkktxl said: In Germany they start with 0.69% But starting offers on a home loan isn't actually the going rate, or meaningful in any way. If it were then my Thai home loan counts in at 2% (for the first year). On my receipt from SCB today, it says 6.12% Link to comment Share on other sites More sharing options...
ikke Posted July 20, 2018 Share Posted July 20, 2018 4 hours ago, BritManToo said: And no Thai bank is charging 12% interest on a home loan. In other words, like all other Thai research/proclamations/announcements, complete BS. Wonder what they will discover looking at plastic in the North Pole? Yes they do ! Why people think they know this matter better than a professor who researched this matter..... I ask to simulate a loan at SCB , they stated 7,5%, but they forget to tell that they don't cut on capital the entire time of the mortgage , So a simulation on an loan of 3.400.000 on 25 year ended up it monthly payments of 41.000 for 300 Month SO EASY CALCULATE........ 300 % or 1%/month SO YES the do charge the full 12 %. Link to comment Share on other sites More sharing options...
kannot Posted July 20, 2018 Share Posted July 20, 2018 5 hours ago, BritManToo said: And no Thai bank is charging 12% interest on a home loan. In other words, like all other Thai research/proclamations/announcements, complete BS. Wonder what they will discover looking at plastic in the North Pole? whatever but "it wont affect Thailand as they are far away" Link to comment Share on other sites More sharing options...
DrTuner Posted July 20, 2018 Share Posted July 20, 2018 They've factored in the risk of Thais defaulting on it. I'd say 120% rate would be appropriate. Link to comment Share on other sites More sharing options...
BritManToo Posted July 20, 2018 Share Posted July 20, 2018 1 hour ago, ikke said: Yes they do ! Why people think they know this matter better than a professor who researched this matter..... I ask to simulate a loan at SCB , they stated 7,5%, but they forget to tell that they don't cut on capital the entire time of the mortgage , So a simulation on an loan of 3.400.000 on 25 year ended up it monthly payments of 41.000 for 300 Month SO EASY CALCULATE........ 300 % or 1%/month SO YES the do charge the full 12 %. The current stated SCB rate is 6.12%, you must be getting a special 'foreigner price' (or something other than their normal home loan rate, business loan maybe?) You should try http://www.hughcalc.org/genloan.cgi to calculate yourself. SCB statements show interest rate, interest repayment, capital repayment and outstanding amount every month. (your loan works out at paid in 10 years using 3.4M, 41k, SCB 6.12%, 1M total interest) How do I know better? I have a SCB home loan. Here we go https://www.scb.co.th/content/dam/scb/personal-banking/rates-fees/loans/loans-en.pdf MLR (secured loan) 6.1%, Business loan 11.4% Link to comment Share on other sites More sharing options...
BritManToo Posted July 20, 2018 Share Posted July 20, 2018 31 minutes ago, BritManToo said: Here we go https://www.scb.co.th/content/dam/scb/personal-banking/rates-fees/loans/loans-en.pdf MLR (secured loan) 6.1%, Business loan 11.4% Tried to edit, MLR (6%) is what most homeowners are offered, ceiling rates (11.4%) and business rates (11.4%) I'm so not sure about. Link to comment Share on other sites More sharing options...
Sir Dude Posted July 20, 2018 Share Posted July 20, 2018 My wife is with SCB regarding house mortgage and last month it was 5.37% on the pink payment slip. So, not really sure what's going on here. Link to comment Share on other sites More sharing options...
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